Temperature Check for DAO Approval: Proposal to Deploy Indigo Protocol V2


Following our previous discussions and the development phase outlined in the “Proposal to Develop Indigo Protocol V2,” the Indigo Labs team is excited to propose the deployment of Indigo Protocol Version 2 (V2) to the Mainnet. This step represents a significant milestone in our journey, introducing a suite of enhanced features and optimizations designed to improve the protocol’s efficiency, security, and user experience.

Updated Indigo Paper and New Features

The Indigo Protocol V2 brings forth an updated Indigo Paper, detailing the strategic features introduced in this version alongside adjustments from V1. This document serves as an essential resource for understanding the advancements in V2, including but not limited to:

  • Enhanced Security Measures: Introduction of new security protocols to safeguard transactions and user data.
  • Optimized Performance: Improvements in transaction processing speed and protocol efficiency.
  • Peg Enhancement Features: Updates aimed at closing the gap of price disparity between Indigo iAsset pegs and DEX trading price. Learn more here: Indigo Protocol V2: Dual Peg Mechanisms
  • Treasury Unlock: The unlocking of the Indigo DAO Treasury.

The attached paper is a near-complete draft, pending the results of the Indigo Protocol V2 audit.

Indigo Paper v2 - draft.pdf (7.8 MB)

Process of Deployment

The deployment of Indigo Protocol V2 will commence with the creation of an on-chain deployment proposal. Following the successful conclusion of this proposal, at the direction of the Indigo DAO, the Indigo Labs team will execute the deployment. This will necessitate a planned downtime of several hours. During this period, access to CDPs, Stability Pool accounts, and Staking Positions via the web app will be temporarily unavailable. Communication regarding this downtime will be issued well in advance, ensuring users are adequately informed and prepared.

Initial Feature Activation

Upon deployment, the following features will be immediately activated:

  • Liquidity State Transitions (LST): Enhancing the throughput of Stability Pool transactions.
  • Exponential Proposal Deposits: Implemented to encourage meaningful and considerate proposal submissions.
  • Protocol Parameters Adjustments:
    • Minimum quorum will be set to 5% of Circulating Supply
    • 450k INDY maximum treasury spend limit per proposal
    • 100k ADA maximum treasury spend limit per proposal
    • No spend limit on other treasury assets

Post-Deployment Feature Introduction

Certain features, such as iAsset parameters (interest rates, maintenance and liquidation ratios, and redemption processes), will be introduced following the successful deployment of V2. This phased approach allows for thorough testing and adjustments, ensuring a smooth transition and optimal performance of the protocol.To learn more abo ut this plan, you can follow our article “Introduction to the Indigo Protocol V2 Transition

Audit Report, Minting Policies & V2 Contracts

The executive summary of the audit report can be downloaded using this link:
Audit Executive Summary.pdf (51.1 KB)

In the spirit of transparency as well as providing technical users the ability to confirm the validity of the V2 smart contracts and upgrades Indigo Labs has open sourced the Indigo Protocol Test Suite. This test suite has over 900 tests covering V1, V2, and the upgrades. In addition, attached is a script that generates the Mainnet V2 validator hashes as well as upgrade minting policies. You can find the test suite repository here: Indigo Upgrade Details GitHub Repo

V2 Validator Hashes

Script Name V2 Validator Hash
CDP Creator 9a5c575d3bf99604bcb691d5f000b4b41866edb893b35a718be5dd01
CDP 0d8aee2011f769502cdc07273f7e118722ebf9c585f3fee061986b7b
Collector 0752abd65a0c983bfb1c9c3880cc632c099ba3adb2fe307afb4bbd9c
Execute ac64deeeab59a038158d4b2e22801253e7a9a87a313479acb7ac46ed
Governance 131f26cd99012663aa063d0ef86dc0ac039d1797d5e062768fb12e74
Poll Manager 31aaab10e57345a2ed5c37ca32c57b2d9dc6219d23b51c85919febe2
Poll Shard 8110c6ae9c92962f01ce98611656c05ea69aa5a709f4ea89c588bbdb
Stability Pool 918765cae1147f5f2d914d45059f8b6497caa149ea94dd8da1f683ce
Staking a23793f529179e09cefb3c37fc6ae081e0e99e99be5cdb55a00941a5
Treasury 16c0a490c721920096645c5594499b2cb1d4067566a9e85855b9326c
Version Record (Currency Symbol) d626ddf398b0bca6e112cf0b78c8124b989a6ca4e7c0dfe8c18c7c2e
Version Registry ea84d625650d066e1645e3e81d9c70a73f9ed837bd96dc49850ae744

V2 Upgrade Minting Policies

Script to Upgrade Minting Policy Hash
CDP Creator b86c0e83626a78641fe7ad42fae043c313705b7c73baae8636db3bb6
CDP d8fba96a5ebeeaee104a5b6c9e9265fff0ad7af8c64698c7364157f0
Collector cbbcd20208527d282f2fb288af0b2ba0a57bdbc96210ab6131ed62e9
Governance 33610fe269ec5c17678eac58f9170407e45a9f4e9c84573f7c795083
Stability Pool 680acc934724a0be8782c37252068146e8bfb73b70b187866bf18d43
Staking 4194eea66ef1922cac1bc6463580588e74f86f7588adfcae6f63d306
Treasury 0c49db0bd96d1c1176dc05bf7b4ced8204365a1fa8a042d5a6de1d54

This temp check is designed to provide a clear overview of the Indigo Protocol V2 deployment. We invite all stakeholders to review the details and contribute their feedback and suggestions. The Indigo Labs team remains committed to transparency, innovation, and the continuous improvement of the Indigo Protocol, and we look forward to your support in this significant step forward.

Update April 4th, 2024

The proposal has been updated to include the following:

  1. A copy of the audit remediation report from the MLabs Audit team.
  2. A repository with the V1, V2, and upgrade upgrade details and UPLC of smart contracts.
  3. The V2 smart contract validator hashes as well as the upgrade minting policies.

Deploy imeeeediately. Don’t look back. Just go.


Stoked for this, can’t wait for V2!


proceed with v2 mates future is ours


I agree that this proposal will benefit the community and stream line proposal submissions… Please move forward.

1 Like

We have come so far. Feels great to be part of this amazing Journey from Private Testnet to V2.


Jan Article stated that “Interest rates will go into effect simultaneously with the V2 launch.” So I guess that’s not the case now and interest will be introduced sometimes later?

1 Like

This is a new era, let’s gooooo


It’s time to shine! Let’s go V2 :rocket:


Press Send!!! Cant come soon enough.


Yes, let’s go !! V2 is going to be awesome !


Are you guys sure that you have the precise colors set for the Protocol app? Maybe we should check again and drag this thing out a bit… We don’t want a crypto-fashion faux pas.

On a more serious note… OF COURSE!!! RUN THE DAMN THING!!! Let’s Go!!! I think that V2 is a great step forward and will show the hard work of this team. Thank you for these continued improvements to the best protocol on Cardanzo!